5-Star ETFs Poised to Pop: Guggenheim S&P Global Water


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Guggenheim S&P Global Water (NYS: CGW) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Guggenheim S&P Global Water and see what CAPS investors are saying about the ETF right now.

Guggenheim S&P Global Water facts


May 2007

Total Assets

$200.9 million

Investment Approach

Seeks investment results that correspond to the S&P Global Water NR Index, which is designed to have a balanced representation from different segments of the water industry.

Expense Ratio


Year-to-Date / 1-Year / 3-Year Return

(4.6%) / (0.7%) / 10.1%

Top Holdings with High CAPS Rating (4 or 5 stars) and Portfolio Weight

Veolia Environnement (NYS: VE) (4.3%)

Sabesp (NYS: SBS) (3.6%)

Aqua America (NYS: WTR) (3.5%)

Dividend Yield



PowerShares Water Resources (NYS: PHO)

PowerShares Global Water (NYS: PIO)

Source: Morningstar and Motley Fool CAPS.

On CAPS, 96% of the 170 members who have rated Guggenheim S&P Global Water believe the ETF will outperform the S&P 500 going forward. These bulls include donjuansw and Trade4Profits.

Earlier this year, donjuansw summed up the bull case: "Potable water is scarce in many places already, and with the population boom in developing nations this situation is only going to get worse. Scarcity and pollution, coupled with population growth means that this long-term play will pay off."

Guggenheim S&P Global Water, in particular, sports a dividend yield of 2.1%. That's higher than that of other water ETFs such as PowerShares Water Resources (1%) and PowerShares Global Water (1.7%).

CAPS member Trade4Profits elaborates on the bull case:

Limited supply and high demand make industries surrounding water -- its supply, management, and exchange-traded funds -- attractive opportunities. Water is the one commodity where demand is not subject to the pressures of macroeconomics. Demand for clean water supply and improved water infrastructure is growing around the globe -- driven by a rising population, increased industrial demand, and the need to upgrade or replace the aging pipes carrying our water.

The 21st Century Commodity: Great [long-term] Investment.

What do you think about Guggenheim S&P Global Water, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Guggenheim S&P Global Water?Add it to your watchlist.

At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Veolia, Sabesp, and Aqua America. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.